The Asian Development Bank (ADB) has agreed to provide a $500m loan for an 800MW power plant project in Khulna, Bangladesh, along with associated connections to natural gas and power transmission facilities.
The loan will be used for developing the plant and equip it with the new combined-cycle technology, which offers efficient conversion of gas to electricity.
For ensuring a continuous gas supply to the power plant, the project will construct 12km gas distribution pipelines.
The loan will also be used to finance construction of a 230kV switchyard at the power plant and 29km of high-capacity transmission lines to transfer generated electricity from Rupsha to the grid.
The plant will also have an advanced water treatment process to purify and recycle liquid waste at the end of the industrial process, leaving zero discharge.
ADB energy specialist Aziz Yusupov said: “In the face of rising demand for energy in a growing economy, the Rupsha power plant will be the first of its kind in Bangladesh, vastly increasing the availability of efficient and cleaner energy.
“By providing additional electricity supply to about 300,000 consumers, the plant will stimulate business expansion and create new job opportunities.”
The project is estimated to cost a total of $1.14bn. The Islamic Development Bank will contribute $300m in co-financing, while the Bangladeshi Government has agreed to offer $338.5m on top of ADB’s support.
ADB will also provide $1.5m in project grant financing that will be offered from its Japan Fund for Poverty Reduction to improve living standards in nearby communities.
The project is expected to be completed by the end of June 2022.